10-Year Savings Projection

Long-term financial impact of SSEG bulk supply cost dilution (2026-2035)

Projection Basis: Currently Deployed Assets

These 10-year projections are based on the existing deployed PV and BESS infrastructure as of March 2026, assuming no additional capacity expansions during the projection period.

PV Solar Capacity

0.961 MWp from 118 SSEG producers

BESS Capacity

4 MWh battery storage system

Assumptions: Eskom tariff escalation at 10% p.a. | SSEG DER escalation at 5% p.a. | No system degradation factored | Fixed SSEG purchase rate of R1.25/kWh (escalating)

R 951.3M

10-Year Cumulative Savings

R 173.1M

Year 10 Annual Savings

+360%

Savings Growth

51.6%

Year 10 Dilution

10-Year Cost Projection: Eskom vs SSEG DER

Comparing annual costs with Eskom (10% escalation) vs SSEG DER (5% escalation)

Cumulative Savings Growth

Total accumulated savings over the 10-year period

Bulk Cost Dilution Trajectory

Percentage reduction vs Eskom-only scenario

Annual Savings Gap: Year-over-Year Growth

The widening gap between Eskom and SSEG costs creates exponentially growing savings

Escalation Rate Differential

The widening savings gap explained

Eskom Annual Escalation

Projected tariff increase rate

10%

SSEG DER Escalation

Fixed contract increase rate

The 5% differential compounds annually, creating an exponentially widening savings gap. By Year 10, Eskom costs grow 135.9% while SSEG costs only increase 55.1%.

Dilution Trajectory

Progressive bulk cost reduction milestones

Year 1 (2026)

26.5% dilution | R 37.6M annual savings

Year 5 (2030)

38.9% dilution | R 81.1M annual savings

Year 10 (2035)

51.6% dilution | R 173.1M annual savings

By Year 10, the municipality pays less than half of what Eskom charges, demonstrating successful bulk supply diversification through DER.

10-Year Cost Evolution: Eskom vs SSEG DER

Complete financial projection with annual and cumulative savings

Year	Eskom Cost	SSEG Cost	Annual Savings	Cumulative	Savings %
2026	R 142.27M	R 104.63M	R 37.64M	R 37.64M	26.5%
2027	R 156.50M	R 109.86M	R 46.63M	R 84.27M	29.8%
2028	R 172.15M	R 115.36M	R 56.79M	R 141.06M	33.0%
2029	R 189.36M	R 121.13M	R 68.23M	R 209.29M	36.0%
2030	R 208.30M	R 127.18M	R 81.11M	R 290.40M	38.9%
2031	R 229.13M	R 133.54M	R 95.58M	R 385.99M	41.7%
2032	R 252.04M	R 140.22M	R 111.82M	R 497.81M	44.4%
2033	R 277.24M	R 147.23M	R 130.01M	R 627.82M	46.9%
2034	R 304.97M	R 154.59M	R 150.38M	R 778.20M	49.3%
2035	R 335.46M	R 162.32M	R 173.14M	R 951.34M	51.6%
Total (10 Years)	R 2,267.4M	R 1,316.1M	-	R 951.34M	42.0% avg